The U.S Environmental Protection Agency is expected to propose that electric vehicles be eligible for renewable energy credits in an upcoming report on biofuel blending mandates said sources.
The program began more than a decade ago and the inclusion of electric vehicles into the federal Renewable Fuel Standard would be one of the largest changes to the program since it began.
The proposal is expected to be sent to the White House for approval by the end of the week, two sources disclosed. This will address mandates for after 2022.
The EPA said the agency intends to meet the deadlines to implement the RFS program but has not given any more details.
The inclusion of the EV industry into the RFS would be a significant part of an already strong policy. The Biden administration has set an ambitious goal to decarbonise the U.S economy by 2050 to reach the net-zero goal and therefore, EVs are a crucial part of the equation to reach this goal.
The EPA is expected to explain in detail annual biofuel blending mandates for multiple years instead of just one.
The switch to a multi-year target would be aimed at providing longer-term certainty to the refining and biofuels industries, which have battled nearly constantly over the annual mandates, said the company.
If the proposal is accepted, carmakers would be able to gain access to a new type of credit known as e-RINs, or electric RINS. The subsidy could spread across the industry too to car charging companies and landfills that supply renewable biogas to power plants.